Travelers are sitting on a substantial accumulation of airline points and miles, largely built up during the pandemic when travel was restricted. Experts like Clint Henderson from The Points Guy advise using these rewards now to book vacations, as cash prices for flights are significantly higher. Airfares in April 2026 were 21% higher than the previous year, with some estimates citing a 27% increase for summer travel.
However, the value of these points has been impacted by dynamic pricing models adopted by most major airlines, which adjust rewards based on supply and demand. This means that travelers often need more points for redemptions than in the past, and some planned redemptions may be in limbo due to reduced flight availability. Brian Kelly, founder of The Points Guy, notes that while points haven't necessarily lost value, consumers need to be more strategic in their redemption.
Rising fuel costs, exacerbated by geopolitical events, are a primary driver of increased airfares and devaluations. Jet fuel prices have nearly doubled since the start of the war in Iran. Airlines are passing on these costs through higher ticket prices, fuel surcharges, and increased fees for services like checked bags; for example, Delta's first checked bag fee rose from $35 to $45. This financial pressure on airlines also extends to loyalty programs, particularly those heavily concentrated in single Gulf carriers like Emirates, Qatar Airways, and Etihad Airways, which have been hit hardest by fuel price increases and route disruptions. Some airlines removed about 2 million seats and 13,000 flights in April.
While using points can offset these rising costs, experts caution against carrying a credit card balance. The average credit card interest rate in the U.S. reached 23.79% in May, which can quickly negate the savings from travel perks. Flexible rewards cards and strategic use of sign-up bonuses, often offering 100,000 to 150,000 points, are recommended for maximizing value. Even hotel loyalty programs, such as Hyatt's expansion to five pricing tiers, are experiencing devaluations, making it advisable to use accumulated points rather than hoarding them.
